Emirates Telecommunications Group, known as e&, and France’s Orange are exploring bids for a 45% stake in Ethiopia’s state-controlled telecoms operator, people with knowledge of the matter said.
E& and Orange have been separately speaking with advisers to weigh offers for the holding in Ethio, the people said, asking not to be identified as the information is private. Deliberations are at an early stage and the Ethiopian government hasn’t announced a timetable for the sale, they said.
The African country has been exploring selling a stake in Ethio, on and off, for the past few years, though an initial process was disrupted by a civil war between the government and leaders of the dissident Tigray People’s Liberation Front. After a peace accord late last year, the government revived the process.
Ethiopia is also exploring offering a licence for a third mobile operator in the country, competing with Ethio and Safaricom, according to the people. E& is also interested in potentially bidding for that, they said. Companies are required to express their interest by 15 September, the people said.
“We are looking closely at Ethio Telecom in particular to see under what conditions the Ethiopian authorities might allow a partner to take a stake in the operator,” a spokesman for Orange said.
A spokesman for e& declined to comment, while representatives for the Ethiopian Communications Authority and Ethiopian Investment Holdings didn’t respond to requests for comment.
Ethiopia is Africa’s second most populous country with more than 110 million people and is one of the largest remaining telecoms markets that could offer a new licence for mobile operators. Africa, with a fast-growing, young population and relatively low levels of wireless penetration, represents an attractive growth market for service providers.
Read: Ethiopia launches tender for new telecoms licence
E& has also explored a potential investment in Vodacom Group, while Orange said it plans to boost growth of its Africa business in its 2030 strategic plan. — Vinicy Chan and Loni Prinsloo, with Archana Narayanan and Fasika Tadesse, (c) 2023 Bloomberg LP